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The Trump-Obama Corporate Tax Reform Fail

They both want a minimum tax on the foreign earnings of U.S. companies. That’s no ‘inversion’ cure.

By

Mihir A. Desai

March 6, 2016 6:32 p.m. ET

Removing the incentive for American companies to move their headquarters abroad is a widely recognized goal. To do so, the U.S. will need to join the rest of the G-7 countries and tax business income only once, in the country where it was earned. Notably, this principle—called territoriality—is included in the bipartisan framework for international tax reform developed by Sens. Rob Portman (R., Ohio) and Charles Schumer (D., N.Y.) in 2015.